We're going to be stuck with dollars for a long time - George Selgin

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George Selgin is Director of Cato's Center for Monetary and Financial Alternatives and author of many books about money such Money: Free and Unfree, and Floored.

Private coins produced during UK's industrial revolution are amongst the best money that George has studied.

Most problems we have now are consequences of bad regulation in the past. Most regulation is bad. We're a long way from having a financial system that can take care of itself. We do need basic laws but not the bad interventions. George illustrates this by the law against branche banking in the past in the US.

George and Paul also discuss Glass Steagall and the creation of the Federal Reserve Bank. The first 20 years of the Fed showed it hardly prevented crises.

Ending the Fed is not so easy right now though. 100 years ago it would have been easier because of the gold standard. You can't get rid of the Fed now without getting rid of the dollar.

If George would be the Fed's Chairman he would turn it into a night watchman Fed only to guard stability of aggregate spending. And he would allow alternatives to the dollar.

Even though it's flawed the dollar is still regarded as one of the best currencies by a lot of people. But we are held hostage by the dollar.

For the immediate future George doesn't see high inflation. Demand for dollars is as extreme as supply. Later on, in 2 years, inflation can be a problem when the Fed needs to restrain itself despite fiscal pressure from the government. We may need a new Paul Volcker.

The gentlemen also discuss the yuan, bitcoin and central bank digital currencies to a great extent. Government will tolerate private currencies until they become dominant says George.

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